Westlake Corporation · NYSE:WLK
Westlake — Westlake Chemical — Q2 2021 Earnings Presentation
15 slides from Westlake's earnings presentation, Aug 3, 2021
Slide 1: Second Quarter 2021 Earnings Presentation
Second Quarter 2021 Earnings Presentation August 3, 2021
Slide 2: Commitment to Corporate Social Responsibility and Five Core Values
Westlake’s sustainability report can be found at https://www.westlake.com/sustainability Commitment to Corporate Social Responsibility is Formed by Five Longstanding Core Values 2
Slide 3: Advancing Sustainability
Advancing Sustainability Participating in Multi-Industry Associations for Environmental Protection Westlake is a proud partner with the following organizations to drive sustainable action to eliminate plastic waste, capture more flexible food packaging waste for recycling and support vinyls’ sustain
Slide 4: Westlake Chemical Second Quarter 2021 Highlights
Westlake Chemical Second Quarter 2021 Highlights 4 Business Highlights Westlake achieved record quarterly net income of $522 million, excluding one-time tax benefits, and record EBITDA of $932 million, anchored by strong margins across our product offerings and generated $617 million in operating
Slide 5: Second Quarter 2021 Financial Highlights
Westlake Chemical Corporation Second Quarter 2021 Financial Highlights (1) Reconciliations of EBITDA, Vinyls EBITDA, Olefins EBITDA and Corporate EBITDA to the applicable GAAP measures can be found on pages 10 and 11 Second Quarter 2021 vs. First Quarter 2021 + Higher sales prices for all of our maj
Slide 6: Vinyls Segment Performance
Vinyls Segment Performance 6 Second Quarter 2021 vs. First Quarter 2021 + Higher sales prices for all of our major products and higher integrated margins + Higher sales volumes for PVC resin + Strong earnings in our building and construction materials business driven by higher prices – Lower caustic
Slide 7: Olefins Segment Performance
Olefins Segment Performance 7 Second Quarter 2021 vs. First Quarter 2021 + Higher polyethylene sales prices and margins – Higher ethane feedstock costs Second Quarter 2021 vs. Second Quarter 2020 + Higher polyethylene sales prices and margins – Lower polyethylene sales volumes – Higher ethane feedst
Slide 8: Financial Reconciliations
EXHIBIT 99.2 Financial Reconciliations
Slide 9: Consolidated Statements of Operations
Consolidated Statements of Operations 9 Net sales $ 2,357 $ 2,859 $ 1,709 $ 5,216 $ 3,641 Cost of sales Gross profit Selling, general and administrative expenses Amortization of intangibles Restructuring, transaction and integration-related costs Income from operations Interest expense Other income,
Slide 10: Reconciliation of EBITDA to Net Income, Income from Operations and Operating Cash Flow
Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities 10 Three months ended March 31, Three months ended June 30, Six months ended June 30, 2021 2021 2020 2021 2020 (In millions of dollars) Net cash provided by operating activities $ 265 $ 617 $
Slide 11: Reconciliation of Vinyls, Olefins and Corporate EBITDA to Operating Income
Reconciliation of Vinyls, Olefins and Corporate EBITDA to Applicable Operating Income (Loss) 11 Three months ended March 31, Three months ended June 30, Six months ended June 30, 2021 2021 2020 2021 2020 (In millions of dollars) Vinyls EBITDA $ 367 $ 605 $ 182 $ 972 $ 414 Less: Depreciation and Amor
Slide 12: Quarterly Industry Pricing
EXHIBIT 99.2 Ie Quarterly Industry Pricing !
Slide 13: Industry pricing data notes
1) Industry pricing data was obtained through IHS Markit ("IHS"). We have not independently verified the data. 2) Average Burner Tip contract prices of natural gas over the period. 3) Average Mont Belvieu spot prices of purity ethane over the period. 4) Average Mont Belvieu spot prices of non-TET pr
Slide 14: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding PVC, polyethylene, building products and caustic soda pricing and demand, continued recovery in key end markets (such as housing starts), our cost control and efficiency efforts, our abi
Slide 15: Slide 15